The Daily Alaska empire Newspaper, February 14, 1939, Page 1

- > THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, TUESDAY, FEBRUARY 14, 1939. VOL. LIIL, NO. 8026. MEMBER ASSOCIATED PRESS - ——— PRICE TEN CENTS STEAMER TIE-UP ENDS; SHIPS TO SAIL No Trace Found Todafi INTENSIVE SEARCHIS BEING MADE Parties Hunhng by land-; Boat Skimming Shores | —Planes in Air | WIDE SECTION IS NOW BEING (OVERED Not One Trace Located of| Fairchild Plane, last | Heard on Sunday | BULLETIN—Shell Simmons, flying over Point Arden with three observers aboard report+ | ed this afterncon that a ground | party should search the shore- line off Point Arden. He ra- | diced at 3 o'clock that debris | tossed upon the shore at this | point should be investigated by a crew from Haida. | | There is no trace today of the missing airplane in which it is reported five passengers and a pilot disappeared Sunday afternoon in| the vicinity of Grand Island near Taku Inlet, approximately 18 miles ocut of Juneau. Pilot of the lost Marine Airways pontoon ship was Lon Cope, vet-.| eran Alaskan aviator, On board the ship were John Chappell, Juneau | snsurance man; E, E. Ek, Juneau | salesman; Earl Clifford, Juneau salesman; George Chamberlain, | Anchorage salesman, and, it is be- | lieved, an 18-year-old youth, Jack | Lennon, who boarded the plane at Wrangell. | The ship was enroute from Ket- | chikan to Juneau on a chartered passenger trip. Extensive Search Searchers by plane and boat re- ported “nothing seen and nothing heard” after two days’ intensive search for the pontoon-equipped Marine Airways plane lost since 2:15 o'clock Sunday afternoon when the final cryptic message from Pilot Lon Cope “passing over Grand Island” was heard over Marine Airways radio in Juneau. Three planes are working the skyways today, combing the area in which the missing ship was last reported. Four boats headed by the Unit- ed States Coast Guard cutter Haida are plying the waters in the section. Landing parties have been put off the Haida and Brant to con- duct shoreline expeditions on the possibility that some indication may be found on the beaches which had escaped vigilance from the tra- versing water craft. False Rumors False rumors of garbled radio reports received from an unknown source at the United States Sig- nal Corp office were discredited by officials of the Signal Corp here. Excitement ran high in Juneau last night over the tale of dlscovery¢ of the lost plane by members of ski expeditions. These parties re- turned to Juneau late yesterday afternoon empty handed. The Marine Airways' two-way radio-equipped pontoon Fairchild was a six-place ship with a six- hour cruising range on full gaso- lene load of 120 gallons. Fuel res- ervoir had been refilled at Ketchi- kan before Lon Cope took off from there with his passenger load last Sunday. The flight from Ketchis kan requires normally two to three hours, + 1! Y The plane is a Fairchil , P chased last October from Pacific Alaska Airways, which firm had | used the ship in the Interior. It| had a black fuselage, blue colored | tail assembly and orange wings. Civil Aeronautics Authority license | number painted on the wings is NC 9777, Call letters of Cope’s plane radio | are KHBDK, Holden Leads Search Leading the air searching maneu- | | Legislafion Esca pe Freak Plane Crash dive. His passenger was Mrs. C. Both escaped injury. Jersey (|Iy Bank Fails Claims of A_pproximaiely $23,000,000 Will Be Paid, It Is Said JERSEY CITY, N. J., Feb. 14. — The Title Guarantee and Trust Company failed to open its doors this morning and the Federal De- posit Corporation announced it will pay claims of approximately $23,- 000,000, the largest payroll of in- sured deposits ever made, Thirty-nine thousand depositors will be reimbursed. Chairman Lee Crowley of the Federal Deposit Corporation said: “The Title Guarantee and Trust Company has been working for some time under the supervision of the authorities to develop a pro- | gram and relieve its frozen condir | tions which resulted from an accu- mulation of large holdings of real estate and other liquid assets.” Most of the depositors of the bank however are covered by the $5,000 maximum individual insur- ance. e — Bars Liffed |On Relief WASHINGTON, Feb. 14.—With- | out a protesting vote, the Senate (Continued on Page Eight) manent relief legislation. OpenDoors e Two Los Angeles sogialites escaped death recently in a freak plane crash at Santa Manica Airport when the ship hurtled a highway, skipped a fence and landed on ifs nose. shows the eraft, pilcted by its owner, Cecil Smallwcod, after the nose- The unusual picture above B. Brunson, Bel Air social figure. MEDICAL INSURANCE NOW | PLACED BEFORE CONGRESS; FLARING IN HAVE OPERATION QUESTION HAS TWO SIDES BORDER AREA By MOR.GAN M. BEATTY AP Feature Service Writer WASHINGTON, Feb. 14. — Who | should sponsor medical msumnce for the millions—Uncle Sam or the nation’s organized doctors? That's the real issue behind the medical headlines so often seen on the nation’s front pages these days. Through the American Medicl. Association, the doctors argue they are qualified by experience to or- ganize and supervise medical insur- ance for the public. They insist government in medicine will lead to| a politicians’ quest for votes instead of adequate medical care for the needy. And they charge that a gov-| ernmental system would set up anv undemocratic bureaucracy and a| wasteful and costly tax collection. , On the other hand, the master| ‘ minds in four great Feedral depart-\sovlet troops have been repulsed ed his hobby, wood carving, into a ments are sure that Federal and but no mention is made of casual- business. State governments jointly should take over medical insurance. These departments are the Treas- ury, with its Public Health Service; | the Labor Department, long a spec- | jal pleader for low wage groups; the Social Security Board, the big- | gest mass’ insurance enterprise in| the world; and the Department of Agriculture, charged with the pro-| tection of farm populations, whi l now receive inadequate medical car e Another government agency, the| Department of Justice, to the furore by putting the medi- cal association on trial for breaking the monopoly laws. The charge is the association tried to block Group Health, Inc, a medical insurance | that the fleet has maneuvered in, is" adding | TWO BATTLE FLEETS IN - MANEUVERS Navy Starts Mock Battle fo | Demonsirate Defenses | of United States |WHITE, BLACK FORCES ARE NOW LINING UP' ‘One Hundred and Forty! | Warships, 600 Planes | | Begin Engagement WASHINGTON, Feb. 14. — Two powerful Naval forces are maneu- | vering for positions in an opening | move of a mock battle to progress | | for the next three weeks. The man- | euvers are designed to show whether |a hostile European power can or cannot break through the Navy de- fenses. | Two fleets are lined up, one at- tacking, known as the White Force, |and the other defending, known as the Black Force: The Black Force has sailed out of the Guantanamo base in Cuba {and the other from a Caribbean | Sea port. | 'The opposing fleets are steaming into the Atlantic. Some 140 warships and 600 planes |are deploying over an area esti- | I mated at 4,000,000 square miles. The vessels are manned by 55,000 | | officers and men. | It is the first time in five years| the ALlantic TROUBLE IS | | Russians and Manchou- | | kuoans Reporfed 1 ‘ in Clashes | TOKYO, Feb. 14—Border clashes between Russian and Manchoukuoan | troops are reported by the Domei | news agency while the lower house of | | the Japanese Parliament demanded a stronger policy against Russia. The Domei dispatch came from Hsinking, Capital of Manchoukuo, |and said clashes occurred Sunday |and Monday near the scene of the | recent skirmishes, It is admitted that the Manchou- | | kuoan forces have been increased m‘ the area. An official communique saxd | ties. | The Japanese Diet has unani- | mously approved of a resolution de- manded a stronger stand against Russia. The resolution was drafted | jointly by all political parties. Church Tossed Into Street in Chile Quake | Missing Cope Plane Wreckage of a church in the street in Chillan, Chile Dne of the first Chile earthquake pictures to reach the United States, this radiophoto shows how a tront portion of 8 church was tos: in_Chillan ‘by the sed into a street tremendous ‘force: of the quake which took 15,000 lives in Chillan alone and:more than 30,000 in the temblor area. e —— U. 5. FOREIGN POLICY IS DISTRUSTED BY WESTERN SENATORS AS ITWAS, 1917 TOM MOONEY T0 Cancels Speaking Dates in Los Angeles—Return fo San Francisco LOS ANGELES, Cal, Feb. Tom Mooney, recently pardoned laborite, became ill while making a series of addresses here and can- celled all engagements. He an- inounced he will return to San Fran- cisco at once and undergo a guu‘ bladder operation in about one week. Slump in Fiddling Brings Carving Boom ST. PETERSBURG, Fla., Feb. 14. —Early in 1933 when a lot of pleas-| ure-seekers got too worried about| | finances to dance, Earl Gresh chuck- ed his job as a band leader and turn- He started out making wooden | buttons. Then he branched out into | wooden pocketbooks. He branching out until now he employs 25 or more persons in his wood carv- ing buslness REPUBLICANS ARE GIVEN PLEDGE WITH HOOVER AS ~ PARTY'S CHIEF KEYNOTER | experiment endowed with a $40,000 | Federal subsidy and run by Gov-| ernment workers heer in Washing- ton on a voluntary basis. BOTH AGREE ON PRINCIPLES Strange as it may seem, the feud- | ing doctors and the Government departmem.s publicly see eye to eye on all the basic principles. They agree that the millions to (Continued on Page Five) | NEW YORK, Feb. 14—Republi- |cans hailed the memory of Abra- ham Lincoln last night with an all- | star battery of speakers and saluted ;me Patron Saint of their Party. | Former President Herbert Hoover was the principal keynoter and he proclaimed the rejuvenated resur- empowered its special committee on | worry about are the families whose | 8ent Republican Party is dedicated unemployment to recommend per-‘ to averting a rendezvous with infla- tion plus a full sized Dictator. The mission of the Republican Party, Hoover said, is preservation of the prineiples of dignity and per- sonality of individual truth, justice, tolerance, mercy, economic restora- | tion and insuring peace for America. Hoover also said the Republican Party will restore jobs, free agricul- ture, and remove the shackles of taxes in order that {reed men wiil| have hope and confidence in the future, ‘| the strength of totalitarian states. 14— kept on| By PRESTON GROVER WASHINGTON, Feb. 14—Smol- dering suspicion in the minds of cer- tain congressional groups about our | foreign policy aims found new fuel lin the President’s purported state- ment to the Senate Military Affairs Commlttee that this government is dellberncaly helping France and |England in their efforts to match This correspondent has reported before the outright suspicion on Capitol Hill that the U. S. has an unwritten alliance with England and France and that the armament pro- gram of the past two years is part of the network. The developments with regard to| airplane orders by France and Eng- land have not allayed such sus- picion. The President himself made no public pronouncement of any plan to put the airplane factories of the | United States at the disposal of | France and England as a deliber- ate policy of matching strength of the democracies against that of the totalitarian states. But the com- mittee conferees allowed enough to leak out to convince reporters that such were his plans. | ‘WELCOMES PLANE PURCHASES | J The President did say at two re- cent press conferences that he was glad to have Prance and England buy planes in the United States for | two reasons. First, it put idle me- | chanics to work. Secand, it helped | | U. 8. plants to perfect the technique | |or mass production. But when he was asked whether he would wel- |come the same use of American/ plants to build German and Italian planes he declined to answer, Much of the suspicion of his for- leign policy arises from the trans- | Mississippi states, the Dakotas and | their neighbors, where anything smacking of participation in Euro- | |pean affairs long has been dis- ‘Lrusted. Several mid-western votes | were cast against U, 8. entry into |the World War. Senator Norris of Nebraska cast one, the only sur- | viving Senator who did so. Trans- ‘Mlsslssippxs lack of enthusiasm for the World -War was of sufficient |concern to the wartime Adminis- tration that special pep- -talkers were sent out to the Dakota country |and adjacent states. Their American loyalty was not quemoned then and it is not now. Another War Bomb Tossed Info Europe Nazi Leader in Czecho- slovakia Makes Start- ling Statement PRAGUE, Feb. 14—Ernest Kundt, | Nazi leader in Czechoslovakia, startled Prague today with the statement that the position of the Germans in the republic are un-| bearable. Kundt said developments since' the government of Rudolf Beran | SCHEDULED SAILINGS - TOMORROW ]Norlhland, Tongass Mark= ed Up to Leave for North Wednesday 'NORTH COAST POSTED T0 LEAVE ON FRIDAY |Masters, Mates and Pilots Reported fo Have Re- sumed Their Jobs The tie-up of steamers on the Alaska routes which began on Feb- ruary 3 when the Masters, Mates and Pilots walked out, is reported ended and several vessels are sched= uled for sailing. Members of Seattle Union No: 90, Masters, Mates and Pllots, ac-~ cording to Assoclated Press dise patches received by The Empire last. night voted fo return to work this morning to end the walkout, pending nrcgotiations regarding their demands. The action followed' rec- ommendations made by their Exec~ utive Committee nt 2 meeting in San Francicso last week. Conference Held Yesterday nfternoon the ship op- erators and the union representa- tives held a conference regarding ending the tie-up. Following the conference, the an- nouncemeht was made by the Un- ion of returning to work but at the same time the operators of the ships announced their position unchanged, the deck officers must return to work before any negotia~ tions looking toward adjustment of the grievances. The deck officers, Masters, uflu and Pilots, then announced they would return and be on the job this morning. 2 Late yesterday afternoon it was reported the tie-up would probably end, then early last evening, D. B. Femmer, Juneau agent of the Al aska Transportation Company, re- celved advices that it looked as if the end was in sight but con- firmation would be sent this morn- came into power has aggravated '.he‘mg | condition of the Germans in Czecho- | slovakia. His assertions caused anxiety in | Czechoslovakia political circles, ALASKA FIRMS GIVEN REFUNDS INCOME TAXES ‘WASHINGTON, Feb. 14. — The House Committee on Expenditures discloses that during the fiscal year of 1938, the Treasury made two re- llmd.s of income tax overpayments to Alaska companies. ‘The Healy River Coal Company, registered in Anchorage, was re- funded $1,528 and the Juneau Cold Storage Company, of Juneau, has been refunded $1,020. KETCHIKAN (10 UNIONS ACTIVE Nonpartisamague Is Or- ganized - Temporary Officers Named KETCHIKAN, Alaska, Feb. 14.—At a meeting of representatives of sev- eral CIO unions here, there was organized a “Nonpartisan League” to be a unit of Labor's Nonpartisan | League. John Olafson was elected tempor- ary Chairman, Bob Harris was chosen Vice-Chairman and Johnny Is Confirmed This morning Femmer received the short terse radiogram “Strike over. Tongass sailing Wednesday night.” v Henry Green, Agent in Juneau of the Northland Transportation Com= pany, received advices from Ket~ chikan that the Northland .d& scheduled to sall from Seattle to- morrow morning for Juneau and wayports, not going to Sitka, but returning direct to Seattle from Juneau. The radiogram also stated the North Coast is scheduled to sall from Seattle Friday for all ports in Southeast Alaska, including Sitka. Agent Horace O. Adams, of the Alaska Steamship Compeny, had received no advices up to 2 o'clock this afternoon but an Assoclated " (Continued »n Page Eigtv ———e—— — AIR FORCES, CHINA ZONE, KEEP ACTIVE Guerilla Warfare Is Alsb Reported on Various Fronts SHANGHAL, Feb. 14.—Guerilla activities continve on widely sep=- arated fronts in the China conflict zone Romero, Secretary-Treasurer, all of- tcantlnued on Page Five) ficers of different CIO unions here. Bothi Chinese and Japanese air forces are also reported to be active,